So you received an offer! Congratulations! But selecting the best one for your home involves considering various factors. I am happy to provide advice and insights based on market conditions to help you navigate the negotiation process.
Things to consider and/or negotiate when you receive and offer are:
- Evaluate the Offers: Compare the offers you receive. Look at the proposed purchase price, contingencies, and any additional terms. Consider not just the highest offer, but also the terms that may be favorable to you.
- Financing: Evaluate the buyer’s financing. A cash offer is usually more attractive as it eliminates the risk of the deal falling through due to financing issues.
- Contingencies: Consider the contingencies in each offer. Fewer contingencies make the offer more appealing.
- Closing Timeline: Evaluate the proposed closing timeline. A quicker closing may be preferable, but ensure it aligns with your own plans and allows enough time for a smooth transition.
- Earnest Money: Consider the amount of earnest money the buyer is willing to put down. A higher earnest money deposit indicates a more serious and committed buyer.
- Inspection and Repairs: Understand the buyer’s stance on inspections and potential repairs. Some offers will come with an “as-is” condition, while others will request an inspection and submit repair requests before closing.
- Buyer’s Pre-Approval or Proof of Funds: When the buyer is pre-approved for a mortgage, a letter is provided from their lender to attach with the offer. Make sure the buyer has been pre-approved. If it is a cash offer, make sure there is a statement or letter from the bank showing enough funds are available to make the purchase.
- Contingency Period: Be aware of the length of the contingency period. A shorter period can lead to a faster and more certain closing. I can negotiate the shortest period possible.
- WhePersonalized Terms: Consider any personalized terms or special requests from the buyer. This will include specific timelines, requests for specific fixtures to be included, or other unique aspects of the offer.
The things to consider and/or negotiate when you receive and offer are things that I am skilled in negotiating so we will discuss them together.
Remember that the “best” offer depends on your specific needs and priorities. It’s not always just about the highest price but about finding a balance that meets your goals and ensures a smooth and successful closing.
For further reading, take a look at my Blog Post: What is an Escalation Clause?